Angela Rayner writes to Housing Industry Stakeholders

Following the publication of the National Planning Policy Framework (NPPF) before Christmas, Deputy Prime Minister Angela Rayner addressed an open letter to housing industry stakeholders. In her letter, she outlined the principal changes the government is introducing to address the sector's challenges, with a focus on tackling the entrenched housing crisis.

The crisis is starkly illustrated by statistics Rayner highlighted in her letter: just 220,000 new homes were built in 2023. Planning Portal’s inaugural Market Index Report last year revealed that nearly 1.5 million homes granted planning permission since 2015 have yet to be built out, building on this complex picture.

Rayner’s letter detailed the key policy changes, including:

A New Standard Method for Assessing Housing Need

The government is introducing a standardised method for local authorities to assess housing needs. This approach will rely on a baseline percentage of existing housing stock, with a stronger emphasis on affordability. The aim is to prioritise delivering homes in areas with the greatest demand and most acute affordability pressures. Rayner stated, “This will have the effect of altering the distribution, increasing numbers in those places facing the most acute affordability pressures, while maintaining ambitious targets across the country – ensuring a national total of 370,000 homes per year.”

Updated Green Belt Policy

Recognising that brownfield land alone cannot meet housing demand, the government has introduced a sequential approach to land use. Brownfield land will be prioritised, followed by low-performing "grey belt" land, with Green Belt development considered only as a last resort.

Key safeguards, referred to as "golden rules," ensure that any Green Belt development must deliver significant benefits, including affordable housing, public infrastructure, and green spaces. Further guidance, including the definition of grey belt land, will follow early this year.

Additional Planning Capacity

To help planning authorities implement these changes, the government is allocating an additional £14 million in funding. This support aims to address the increased demands created by the NPPF updates.

Increased Planning Fees

Planning fees have been raised to help authorities manage the new requirements. This includes higher fees for householder and minor applications, with future plans to allow cost recovery tailored to individual authorities. This approach seeks to further bolster local resourcing.

Prior to the release of the NPPF, Planning Portal and TerraQuest conducted extensive research into the effects of key policy changes on land supply, weighing up the potential impacts of each update. You can read the full whitepaper, Plotting the Future, on the TerraQuest website.¹

You can also read Angela Rayner’s letter on the government website.²

Government Consults on Removing ‘Hope Value’ in Compulsory Purchases to Boost Affordable Housing

The government has opened a consultation on proposed changes to compulsory purchase order (CPO) rules, including the removal of “hope value” to support affordable housing delivery. Hope value, which reflects the potential future development value of land, often increases compensation costs for landowners. The new proposals aim to exclude hope value when land is acquired for public interest projects such as affordable housing.

Key points from the consultation include:

• Affordable housing priority: Excluding hope value in CPOs for affordable and social housing projects.
• Simplified approvals: Empowering inspectors or acquiring authorities to confirm CPOs in straightforward cases, reducing delays.
• Unlocking stalled sites: Allowing councils to nominate land suitable for housing where development has stalled due to infrastructure or viability issues.

The changes aim to make the CPO process more efficient, ultimately accelerating the delivery of much-needed affordable housing.

Housing minister Matthew Pennycook said: “In our manifesto, we committed ourselves to further compulsory purchase reform to deliver more housing, infrastructure, amenity, and transport benefits in the public interest.”

The changes would “make the process faster and more efficient”, he added.

As specialists in land referencing, TerraQuest is closely following these proposed reforms and their implications for public sector projects. Our expertise in managing complex land referencing processes ensures that clients can navigate the evolving CPO landscape confidently and efficiently.

If your project involves land assembly, compulsory purchase, or development schemes, our land referencing services³ provide the insight and support you need to achieve success. Visit our website to find out more.⁴

Homes England Introduces Section 106 Clearing Service to Boost Affordable Housing Delivery

Homes England has unveiled a new Section 106 “clearing service” designed to tackle barriers in delivering affordable housing across England. This centralised database connects housebuilders, local planning authorities, and registered providers, showcasing uncontracted and unsold affordable housing opportunities outside of London.

The service aims to enhance visibility and foster collaboration, enabling housing associations and councils to access and act on opportunities to increase affordable housing provision. However, the Home Builders Federation (HBF) has cautioned that broader sector challenges, such as limited capacity and interest among housing associations, are delaying progress on 139 sites, affecting over 17,400 homes.

While the clearing service represents a step forward in addressing housing delivery delays, Homes England acknowledges that the sector will require continued effort to overcome economic and policy hurdles.

Planning Portal and TerraQuest’s recent litepaper, Plotting the Future⁵, examines how several key policy changes introduced by Labour stand to affect the supply of land in the UK, particularly for housing development. Visit our website now to read the full report.⁶

1. https://www.terraquest.co.uk/news-and-insights/plotting-for-the-future
2. https://assets.publishing.service.gov.uk/media/6776bdb29986e7da2629c5e8/Letter_from_the_Deputy_Prime_Minister_to_stakeholders_-_Building_the_homes_we_need.pdf
3. https://www.terraquest.co.uk/products-services/land-referencing
4. https://www.terraquest.co.uk/products-services/land-referencing
5. https://www.terraquest.co.uk/news-and-insights/plotting-for-the-future
6. https://www.terraquest.co.uk/news-and-insights/plotting-for-the-future